Cement makers to add GH₵12 surcharge per bag as Tema Port congestion drains millions

Ghana's cement manufacturing sector is preparing to pass a new cost directly to consumers, adding GH₵12 to the price of every bag of cement sold domestically. The move reflects escalating operational losses linked to severe congestion at Tema Port, where clinker—the essential raw material for cement production—now takes up to 40 days to clear, compared to just seven days at the start of the year.

According to industry sources, manufacturers are introducing this charge as a "Clinker Demurrage Surcharge," structured as a temporary, itemized pass-through that will be reviewed quarterly. The decision comes after the sector incurred an estimated US$45 to US$50 million in unbudgeted losses this year alone, driven primarily by demurrage penalties on vessels waiting at anchorage.

The scale of the problem

The financial impact is staggering. With daily vessel demurrage rates reaching approximately US$27,000 per day, a single ship waiting 40 days at Tema Port accumulates over US$1 million in penalty fees before unloading any cargo. These costs, paid to international shipping lines, represent a direct drain on Ghana's foreign exchange reserves and capital that could otherwise circulate within the local economy.

The congestion has created a structural bottleneck in the supply chain. Clinker typically requires 35 days to travel from China to Ghana; when combined with 35 to 40 days of waiting at port, the total procurement cycle stretches to nearly three months. This extended timeline constrains production schedules and forces manufacturers to absorb mounting costs while maintaining inventory.

The root cause remains inadequate port infrastructure and limited berthing capacity. Industry stakeholders have identified potential immediate solutions, including optimised access to Berths 10 and 11, which could help clear the vessel backlog more efficiently.

Why it matters for Ghana

This surcharge will affect every Ghanaian buying cement for construction, renovation, or business purposes. While manufacturers frame the GH₵12 addition as temporary and directly tied to port delays, it signals broader challenges in Ghana's critical infrastructure that undermine the competitiveness of local industries.

The cement sector is vital to Ghana's construction economy, supporting residential, commercial, and infrastructure projects nationwide. Rising input costs ripple through the value chain—driving up housing costs, construction project budgets, and ultimately affecting ordinary Ghanaians and businesses dependent on affordable building materials.

Beyond the immediate price impact, the situation reflects systemic inefficiencies at Tema Port, one of West Africa's major gateways. Chronic congestion damages Ghana's reputation as a reliable logistics hub, potentially pushing regional trade and investment toward competitor ports in Côte d'Ivoire and other neighbouring countries.

Industry and government response

Cement manufacturers have initiated discussions with the Ministries of Trade, Agribusiness and Industry, and Transport to address the bottleneck. The industry's message is collaborative: resolving port congestion will eliminate both the demurrage burden and the need for the surcharge.

Manufacturers emphasise that the GH₵12 charge is not a permanent price increase but a direct cost recovery mechanism. If port clearance times normalise, the surcharge can be adjusted downwards or removed entirely. However, without intervention to expand berthing capacity and streamline port operations, the pressure on cement prices—and by extension, construction costs across Ghana—is likely to persist.